Herbst Gaming to Buy Sands Regent in Reno

LAS VEGAS and RENO, Nevada -- Herbst Gaming, Inc. and The Sands Regent (Nasdaq: SNDS) announced today that the Board of Directors of both companies have unanimously approved, and the companies have
The Sands Regency is the flagship property of the Sands Regent company.  entered into, a definitive merger agreement under which a subsidiary of Herbst Gaming, Inc. will be merged with and into The Sands Regent, resulting in The Sands Regent becoming a wholly-owned subsidiary of Herbst Gaming, Inc. Pursuant to the merger agreement, shareholders of The Sands Regent will be entitled to receive $15.00 per share in cash in the merger. The transaction is valued at approximately $148 million.

Edward J. Herbst, Chairman, Chief Executive Officer and President of Herbst Gaming, Inc. commented, "This transaction will enable Herbst to further broaden and diversify its geographic presence within the state of Nevada and its cash flows as well as create cross-marketing and other growth opportunities. In addition to Herbst's route operations, the combined company will own and operate 12 casinos in three states. Finally, The Sands Regent's management team, with its in-depth expertise of the Northern Nevada locals' markets, will make a great addition to our company."

Ferenc B. Szony, President and Chief Executive Officer of The Sands Regent, said, "We believe this transaction delivers excellent value to our shareholders and creates increased opportunities for growth and development for our employees, who will benefit from being part of a larger and more diversified gaming company. We are committed to completing the transaction as expeditiously as possible and ensuring a seamless transition."

The transaction is subject to approval by The Sands Regent shareholders and the satisfaction of customary closing conditions including Herbst Gaming obtaining all requisite regulatory and third party approvals, including gaming regulatory approvals and expiration of the waiting period under the Hart- Scott-Rodino Act.

Wachovia Securities served as financial advisor to Herbst Gaming and Gibson, Dunn & Crutcher LLP acted as legal advisor. Mercanti Securities, LLC served as financial advisor to The Sands Regent and Latham & Watkins LLP acted as legal advisor. The transaction is not subject to financing and is expected to close by the end of the year.